South Africans can now breathe a sigh of relief as new regulations have been established to protect consumers against unwanted spam calls. The Consumer Protection Act Amendment Regulations, gazetted by the Minister of Trade, Industry and Competition, Parks Tau, introduce a formal National Consumer Commission (NCC) opt-out registry for South Africans who are tired of spam calls.
The amended regulations provide a framework for this registry, mandating direct marketer registration and annual renewal, imposing monthly ‘cleansing’ of marketing databases against the registry, and prohibiting marketing to consumers who have registered a pre-emptive block, effective immediately. The NCC welcomed the amendment of the Consumer Protection Act (CPA), which aims to stem unwanted calls to ensure that consumers are protected.
How the Opt-out Registry Works
Through the system, consumers will be able to block unwanted direct marketing communication from either an individual direct marketer or the entire industry. Registration of direct marketers and consumers will commence in July, and all direct marketers will be expected to register to ensure compliance with the CPA. Failure by direct marketers to comply with the regulations will be in violation of the CPA, and they can face an administrative penalty of up to R1 Million or 10% of the direct marketers’ annual turnover (whichever is greater).
According to the South African Government website, the regulations provide for a robust mechanism to protect consumers from intrusive and unwanted direct marketing communication. The NCC’s Acting Commissioner, Hardin Ratshisusu, said: “For too long, consumers have been exposed to intrusive and unwanted direct marketing communication. The regulations provide for a robust mechanism to stem unwanted calls to ensure that consumers are protected.”
Benefits for Consumers
The benefits of the opt-out registry are numerous, and consumers can expect to see a significant decrease in spam calls. Some of the benefits include:
- Reduced number of unwanted calls
- Increased protection for consumers
- Improved compliance from direct marketers
As the Consumer Protection guidelines suggest, consumers have the right to opt-out of direct marketing, and the new regulations will ensure that this right is protected. With the introduction of the opt-out registry, South Africans can look forward to a significant decrease in spam calls and a more controlled direct marketing environment.
